Favorable factors of auto parts industry

(1) China's industrial policy supports the development of automobile manufacturing and related industries

In recent years, the country has issued a series of industrial policies to build a good policy environment for the development of automobile manufacturing and related industries.

China has successively promulgated the Medium and Long-term Plan for the Automobile Industry, the Regulations on the Investment Management of the Automobile Industry, the Implementation Plan for Further Optimizing the Supply to Promote the Steady Growth of Consumption and Promote the Formation of a Strong Domestic Market (2019), the Guiding Catalogue for Industrial Restructuring (2019), the Development Plan for the New Energy Automobile Industry (2021-2035) and other policies to encourage the high-quality development of the automobile industry and consolidate the supporting system of parts and components, Improve and consolidate the advantages of the domestic industry chain, promote the automobile trade and circulation, meet the consumer demand of residents, promote the transformation and upgrading of China's automobile industry, increase the voice of China's automobile industry, and develop into a world auto power.

(2) Adjustment of China's auto parts market competition pattern

With the increase in the popularity of domestic cars, the production and sales of cars show a downward trend, and the stock market competition is fierce, resulting in the survival of small and medium-sized parts enterprises in the auto parts industry facing greater challenges, and the industry is facing the situation of reshuffle. Enterprises with better technology and quality will survive and grow in the predicament, and some enterprises with small scale, lack of leading products, low production efficiency and lack of competitiveness will be eliminated.

(3) The position of China's auto parts industry chain in the post-epidemic era has been further improved

In recent years, as the automotive industry in Europe and the United States has entered a mature period, the market tends to be saturated and the growth rate is relatively slow, the international complete vehicle manufacturers, together with the original auto parts suppliers, invest and build factories in the Asia-Pacific region for the purpose of opening up emerging markets, optimizing the industrial chain and controlling production costs; At the same time, China, Japan and South Korea have cultivated a large number of local parts enterprises with the automobile industry as the pillar industry. At present, the Asia-Pacific region has become the production center of global auto parts.

In the past three years, during the global pandemic of the COVID-19, China has made remarkable strategic achievements, successfully controlled the epidemic and returned to work first in the world. The rapid recovery of China's auto parts industry chain has consolidated and enhanced the position of China's auto parts industry in the global auto industry, and strengthened the confidence of international partners in Chinese enterprises. In the post-epidemic era, China's auto parts industry has strengthened its position in the global auto industry, providing more development opportunities for domestic auto parts enterprises.